Navigating the increasingly complicated UK tax system is hard for any business, but especially tricky when you’re a landlord or property investor.

As a landlord, you’ll need to fill out a Self Assessment tax return annually.

Unfortunately, income tax has to be paid by almost everyone. If you’re investing, developing or sourcing properties, providing serviced accommodation, or providing houses of multiple occupancies, you’ll have to pay income tax.

You’ll also have to square up with HMRC when you earn a salary or receive dividends from a limited company.

There are ways to reduce your tax bill legitimately, and many of these reliefs and deductions go unclaimed each year by landlords and investors.

Today, we’ve rounded up the top income tax reliefs you could be missing out on.

Property Income Allowance.

If your property income is £1,000 or less, you won’t need to file a tax return or pay any tax on your profits.

However, if you did incur a loss, we’d recommend letting HMRC know so that you can ensure this is carried forward.

Replacement of domestic items.

When you replace certain domestic items, you can claim it as a deduction against your taxable profits.

An example of this would be replacing an existing electrical appliance in a rental property.

However, if you are furnishing a property that hasn’t been previously let, these costs are not an allowable expense.

Rent a Room Scheme.

If you let out a room in your home, you’re entitled to up to £7,500 a year tax-free as part of the government’s Rent a Room Scheme.

To be eligible for this, you need to provide furnished accommodation in your only or main home.

The scheme applies to those who let furnished rooms to lodgers, run guest houses and bed and breakfast businesses or provide services like cooked meals and cleaning.

Sideways loss relief.

You may also be able to offset trading losses against other income or capital gains. But, this relief does not apply to losses from a property business.

And don’t forget about personal allowance, dividends, personal savings.

Yep, landlords and property investors are entitled to the same reliefs as any other taxpayer.

Any income you earn up to the personal allowance is free from income tax. Meanwhile, you can earn up to £2,000 of dividend from a limited company tax-free.

Basic rate taxpayers receive £1,000 of interest income free of income tax per year, while higher rate taxpayers receive £500.

For more information about tax and accounting for landlords, please get in touch with a member of our team.